With the development of the Chinese economy and a booming
advertising business, the Chinese media industry has overtaken the
tobacco industry with annual profits of over 100 billion yuan
(US$12 billion) to become the fourth largest industry in China this
year.
According to the Beijing Business Today, many investors are
keeping a keen eye on this giant sunrise industry and its huge
profit potential. A recent survey shows that the return on
investment rate for Chinese newspapers has risen from 17 percent to
50 percent, much higher than compared with other industries. So
far, China's first four key industries, in order, are the
electronic information industry, the manufacturing industry, the
travel industry and the media industry.
The 16 newspaper groups, including the Guangming Daily group, the
Nanfang Daily group, the Yangcheng Evening Post group and the
Economic Daily group, have assets each totaling millions of yuan.
All groups have a series of secondary publications. They are also
realizing the benefits or sharing resources and large scale
operations.
China has the largest broadcast television network in the world.
Statistics show that broadcasts cover 93 percent of the population
and that TV is available throughout 94 percent of China, creating
an audience of over 1 billion people. Cable TV now covers 3 million
kilometers and reaches a total of 100 million subscribers. At the
same time, China's Internet media is developing rapidly. By the end
of 2000, 2000 of the 10,000 mass media enterprises had their own
web based news sites.
A
study by ACNielsen Media Research suggests that despite the
influence of the global economic turndown, China has maintained an
increase of 16 percent in advertising revenue. Advertising income
for TV, newspapers and magazines all reached new highs of US$8.1
billion, US$2.9 billion and US$200 million respectively, with
separate increases of 17 percent, 13 percent and 21 percent.
Bids for CCTV prime-time advertising have also reached new levels.
The Jiangsu-based Panda Group recently won a bid to air
advertisements at a cost of over 100 million yuan (US$12 million)
and became the first enterprise to spend more than 100 million yuan
for the privilege.
Vice-Director of the Press and Publication Administration Liu
Bingjie said during an interview with the Financial Times
that the relevant departments are now working to formulate
regulations for foreign investment entering the Chinese publishing
industry, which will be released by the end of the year.
China has promised to partly open up its publishing industry in
some cities during its first year of WTO membership, and to totally
open up the advertising market within three years. After the third
year the wholesale market will also open up. Within five years, the
Press and Publication Administration will lift all restrictions,
including the number, area and share for all distribution
enterprises, said Liu.
Liu went on to say that China is going to conduct some experiments.
First China will allow an inflow of capital from Hong Kong, Macao
and Taiwan. Policies for overseas capital investment will then be
born out of results from investment from these areas.
So
far, some foreign enterprises have applied to the Press and
Publication Administration for licenses. Officials will only permit
those who qualify, said Liu.
(China.org.cn by Zheng Guihong, December 6, 2002)